Question: Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Barbecue Division sales income ps 500,000 Barbecue Division worker

Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line.

Barbecue Division sales incomeps500,000
Barbecue Division worker wages(100,000)
direct material(300.000)
Sunk costs (equipment depreciation)(75,000)
Facility maintenance costs allocated to the entire company(50,000)
Net lossps(25,000)


If Division is eliminated, what is the total amount of avoidable costs?

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